Helpful Answers to the Most Common Questions
What types of borrowers do you lend to?
We cater for the needs of a wide variety of businesses and entrepreneurs, including: individuals, limited companies, limited liability partnerships (LLPs), self-invested personal pensions (SIPPs), small self-administered schemes (SSAS) and trusts. Individuals: When lending to individuals, our standard conditions apply and are dependent on the status of the applicant (i.e. employed, self-employed, owner occupier or investor). Note: Loans are available: for applicants acting solely within their trade, business or profession, and when the purpose of loan solely relates to such trade, business or profession Limited companies: For limited company applications, the majority shareholders must be party to the application. They will be required to provide a full personal guarantee. Limited companies registered outside of England or Wales will be considered on a case-by-case basis. Limited liability partnerships: These will be treated much the same as limited companies. Self-invested personal pensions and small self-administered schemes: We’ll need to carry out due diligence on the pension scheme and the commercial tenant. Trusts: A copy of the trust deed will always be required.
Do InterBay ever meet the applicant?
There are occasions when we will require a meeting. This tends to be in cases where our loan exposure to the applicant exceeds £3,000,000. These face-to-face meetings happen prior to issuing a Formal Offer.
How do you calculate the Interest Coverage Ratio (ICR)?
The ICR is the calculation we use to determine that the loan is affordable on an investment basis and that the market rent determined by the valuer provides adequate cover for the loan repayments. We expect cover to 125%-160% of the interest-only payment, depending on the property type and whether or not we are lending to a limited company. For full details please see the individual product pages.
Do InterBay have any limits on concentration?
Strictly speaking, we do not have limits on concentration. However, we may seek to either limit the LTV or load the pay rate to reflect the concentration risk.
Do InterBay allow gifted deposits?
Gifted deposits will be considered but only where the gifted deposit is from an immediate family member e.g. parents, siblings and/or grandparents.
Do you lend to ex-pats?
Yes, subject to certain restrictions.
Do InterBay allow Key Partners to package loans?
InterBay will allow Gold Key Partners to operate as a packager for straight forward Buy to Let business and to submit a fully packaged case for a formal offer. Please consult our ‘ PDF for more information.